Government will soon crack the whip on companies and local authorities that fail to award contracts to indigenous businesses as required by law, the National Indigenisation and Economic Empowerment Board (NIEEB) said on Tuesday.
NIEEB chairperson David Chapfika said his organisation would work closely with the State Procurement Board to ensure indigenous companies benefited from tenders.
NIEEB is a special purpose vehicle set up by government to drive the indigenisation and empowerment programme.
Addressing a Press conference in Harare on Tuesday, Chapfika said the move was in line with section 3 (1) of the Indigenisation and Economic Empowerment Act.
The Act requires all government departments, statutory and local authorities to procure at least 50% of their goods and services from indigenous companies.
“A company that fails to comply will be defrauding the country and will be dealt with according to the law,” said Chapfika.
“Where non-indigenous companies are exceptionally awarded contracts they are required to subcontract to indigenous companies.”
He said NIEEB would be issuing compliance certificates periodically to compliant indigenous companies and other affected interest groups.
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“These certificates will carry specific features that will make it very difficult to forge and will be given as per application,” said Chapfika.
